Company Reports

Wide-moat-rated Graco posted disappointing first-quarter results, as its net sales of $492 million and adjusted EPS of $0.65 both fell short of the FactSet consensus estimates of $536 million and $0.74, respectively. We’ve lowered our fair value estimate to $78 from $80, which reflects our more muted near-term revenue growth and operating margin projections, partially offset by time value of money. The stock fell nearly 7% following the earnings release on April 25 and is now trading in 3-star territory.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Wide-moat-rated Graco ended 2023 on a strong note, as its full-year adjusted EPS of $3.04 beat our estimate by $0.07. After rolling our model forward one year, we’ve raised our fair value estimate to $80 from $77, which reflects our slightly more optimistic midcycle operating margin assumptions as well as time value of money. We see shares as fairly valued at current levels.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

We’ve increased our fair value estimate for wide-moat-rated Graco to $77 from $75 after the company reported solid third-quarter results, featuring a 15% year-over-year increase in adjusted EPS. The fair value increase reflects our slightly more optimistic near-term operating margin assumptions as well as time value of money.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Wide-moat-rated Graco’s second-quarter revenue of $559.6 million and adjusted EPS of $0.75 both fell short of FactSet consensus expectations ($576 million and $0.80, respectively), sending shares down roughly 8% intraday. We’ve made some puts and takes in our model, but our $75 fair value estimate for Graco remains unchanged. After the pullback, we see the name as fairly valued, with shares now trading in 3-star territory.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Wide-moat-rated Graco posted strong first-quarter results, featuring double-digit year-over-year core sales growth despite headwinds in Asia-Pacific. However, management said on the earnings call that order rates in Asia-Pacific improved throughout the quarter and that it anticipates full-year sales growth in the region to be positive. We’ve increased our fair value estimate to $75 per share from $73, which reflects our slightly more optimistic operating margin assumptions as well as the time value of money.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Wide-moat-rated Graco finished 2022 on a strong note, as its fourth-quarter adjusted EPS of $0.74 beat our estimate by $0.07. Graco’s sales of roughly $555 million came in line with our expectations, though on stronger performance in the industrial and process segments but slower growth in contractor relative to our projections. We are maintaining our $73 fair value estimate as nothing in Graco’s fourth-quarter earnings release materially alters our long-term thesis.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Wide-moat Graco posted a 14% year-over-year increase in adjusted EPS in the third quarter, to $0.67 from $0.59, despite a $0.05 foreign-currency headwind. We’ve maintained our $73 fair value estimate as nothing in the third-quarter earnings release materially alters our long-term outlook for the firm. We see Graco as appropriately valued at current levels.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Wide-moat-rated Graco delivered solid second-quarter results, featuring a 10% year-over-year increase in adjusted EPS, from $0.62 to $0.68. We have reduced our fair value estimate for Graco to $73 from $76, which reflects our slightly more muted near-term profitability assumptions, given persistent supply chain constraints and cost inflation, partially offset by time value of money. The stock is currently trading in 4-star territory, which we see as an attractive entry point.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

We are maintaining our $76 fair value estimate for Graco following the wide-moat-rated firm’s first-quarter earnings release. We’ve made some puts and takes in our model but nothing in Graco’s earnings results fundamentally alters our long-term outlook for the company. We view the name as modestly undervalued, with shares currently trading in 4-star territory.

Graco is a wide-moat industrial firm that has consistently delivered returns on invested capital above 20%. The company differentiates itself by manufacturing specialized products that handle difficult-to-move liquids, often used for niche applications where competition is limited. The firm offers a wide array of products, including pumps used to move peanut butter or caramel, automotive paint spray systems, and injection pumps for the oil and gas industry.

Wide-moat-rated Graco delivered solid fourth-quarter results, as its full-year revenue of $1,988 million and adjusted EPS of $2.44 both exceeded our expectations of $1,947 million and $2.37. After rolling our model forward one year, we’ve increased our fair value estimate for Graco to $76 from $73, which reflects an improved near-term outlook, time value of money, as well as reversing the implementation of a probability-weighted change in the U.S. statutory tax rate in our model. We view the stock as fairly valued at current levels.